The first electronic stock market is known as

Highway 55 Studios has budgeted the following amounts for its next fiscal year: Total fixed expenses $ 1 comma 980 comma 000 Se

faust18 [17]

Answer:

Contribution per unit = Selling price - Unit variable cost

= $70 - $10 = $60

Break-even sales in units = Fixed cost

Contribution per unit

= $1,980,000

$60

= 33,000 units

If fixed cost reduced by $49,500, new fixed cost will be $1.930,500

33,000 = $1,930,500

$70 - VC

33,000(70 - VC) = $1,930,500

2,310,000 - 33,000VC = $1,930,500

2,310,000 - $1,930,500 = 33,000VC

379,500 = 33,000VC

379,500 = VC

33,000

VC = $11.50

Increase in variable expenses per unit

= $11.50 - $10 = $1.50

Explanation:

In this case, we need to determine the break-even point in units, which is fixed cost divided by variable expenses per unit. If total fixed expenses reduced by $49,500, the new total fixed expenses will be $1,930,500. Then, we will equate the break-even point in units to the new fixed cost divided by contribution per unit, which is selling price minus variable expenses per unit. Since break-even point in units, new fixed cost and selling price were known with the exception of variable cost, variable cost becomes the subject of the formula. The old variable expenses will be deducted from the new variable expenses so as to obtain increase in variable expenses per unit.

7 0

3 years ago

Which of the following activities describes the opportunity cost of attending an economics class?

zhuklara [117]

Answer:

C is the correct option

Explanation:

Opportunity cost is a concept of Macroeconomic theory. It is also known as an alternative cost. It is the value of what one gives up to choose something else. In simple terms, we can say that it is the value of the road not taken. In the above question, the value of the activities one had to leave to attend the economics class woul be known as the Opprtunity cost.

5 0

3 years ago

Honda Motor Company is considering offering a $ 1 comma 800 rebate on its minivan, lowering the vehicle's price from $ 30 comm

finlep [7]

Answer:

Taking into consideration only the income, the increase in unit sales will not increase the income of Honda. It can impact in other ways, like a decrease in inventory.

Explanation:

Giving the following information:

Honda Motor Company is considering offering an $1800 rebate on its minivan

New price $30200

Old price $28400.

The marketing group estimates that this rebate will increase sales over the next year from 42000 to 53900 vehicles.

Honda's profit margin with the rebate is $5650 per vehicle.

Normal price:

Income= (5650+1800)*42000= $312,900,000

New price:

Income= 5650* 53900= $304,535,000

Taking into consideration only the income, the increase in unit sales will not increase the income of Honda. It can impact in other ways, like a decrease in inventory.

6 0

3 years ago

If HHC has $1,900 cash, $500 of government Treasury bills purchased four months ago, $930 of cash set aside for its workers' com

yarga [219]

Cash is the real money that we have while cash equivalents are instruments that can be turn to cash quickly. They are very liquid.

Treasury bills are cash equivalents. They are very liquid and can be converted into cash quickly. They are instruments in the money market.

Going by this above explanation, the Cash and Cash Equivalents that will be reported on the balance sheet are:

Cash --------------------------------------- $1,900

Treasury bills purchased--------------$500

Total-------------------------------------------$2,400

$2,400 will be reported as Cash and Cash Equivalents on the balance sheet.

8 0

3 years ago

According to Michael Porter, a firm practicing a niche strategy:

Maslowich

Answer:

b. Dominates a particular target market although its overall market share may be low.

Explanation:

A niche strategy of the porter was to come with the product that fills the market segment and is characterized by the narrow specialization of the services focusing on a specific need.

4 0

3 years ago